Disney to Sell Debt, Has Bad Day on Wall Street
Burbank-based Walt Disney Co plans to sell $500 million of debt as soon as today, reports Bloomberg news citing a person familiar with the sale. The senior unsecured notes will mature in five years. The offering is planed to be managed by Barclays Capital, Banc of America Securities LLC and Credit Suisse Group, Bloomberg said. Proceeds will be used for general corporate purposes. He didn’t elaborate. Disney’s senior unsecured debt is rated A3 by Moody’s Investors Service and A- by Standard & Poor’s, the seventh lowest of 10 investment-grade ratings. Disney last sold debt in the U.S. during 2002, issuing $300 million of 5.875 percent bonds due in 2017, according to data compiled by Bloomberg. Disney also had a bad day on Wall Street. Shares in the second-largest U.S., media company had their biggest decline in three years after being downgraded by CIBC World Markets Inc., which cited slower growth in fiscal 2007 because of lower theme-park attendance and fewer television shows in syndication. Shares of the company fell $1.21, or 4.1 percent, to $28.70 the biggest percentage decline since June 2003.
ePoint Gets Airport Security Deal
Global ePoint, Inc., the City of Industry-based manufacturer of surveillance technologies, said that its subsidiary, Tops Digital Security, has entered the airport security market with its first contract from a municipal airport. The name of the airport and the amount of the contract were not disclosed for security reasons, the company said. The deal included cameras with digital video recording capability for closed-circuit TV security
As well as access control equipment, ePoint said.
IHOP Sees Rise in Sales
Glendale-based IHOP Corp. said its same-store sales rose 3.1 percent in the second quarter. Same-store sales are a common barometer for sector performance and apply to stores open at least a year. Same-store sales rose 4.1 percent in the first half of year, the company said. The company said promotions, among other factors, helped boost sales in a difficult consumer spending environment. IHOP also said it is on track to meet its 2006 same-store sales growth guidance of a 2 percent to 4 percent growth.
KB Declares Dividend
KB Home said it declared a quarterly cash dividend of twenty-five cents per share on the company’s common stock, payable on August 24, 2006 to shareholders of record on August 10, 2006.
